{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T14:11:11-04:00", "answer_date": "2024-06-06 14:11:11", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2370982", "url": "\/study-help\/questions\/you-are-evaluating-a-new-product-in-year-3-of-2370982", "question_creation_date_js": "2024-06-06T14:11:11-04:00", "question_creation_date": "Jun 06, 2024 02:11 PM", "meta_title": "[Solved] You are evaluating a new product. In year | SolutionInn", "meta_description": "Answer of - You are evaluating a new product. In year 3 of youranalysis, you are projecting pro forma sales of $ 5 5 million and c | SolutionInn", "meta_keywords": "evaluating,new,product,year,3,youranalysis,projecting,pro,forma,sales,$,5", "question_title_h1": "You are evaluating a new product. In year 3 of youranalysis, you are projecting pro forma sales of $ 5 5 million and cost of", "question_title": "You are evaluating a new product. In year 3 of youranalysis, you", "question_title_for_js_snippet": "You are evaluating a new product In year 3 of youranalysis, you are projecting pro forma sales of $ 5 5 million and cost of goods sold of $ 3 You will be depreciating a $ 1 million machine for 5 5 years usingstraight line depreciation Your tax rate is 35 Finally, you expect working capital to increase from $ 200,000 in year 2 to $ 300,000 in year 3 What are your pro forma earnings for year3 What are your pro forma free cash flows for year3 ", "question_description": "

You are evaluating a new product. In year 3 of youranalysis, you are projecting pro forma sales of $<\/span>5<\/span><\/p>

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5<\/span> million and cost of goods sold of $<\/span>3.<\/span> You will be depreciating a $<\/span>1<\/span> million machine for <\/span>5<\/span><\/p>

<\/p>

5<\/span> years usingstraight-line depreciation. Your tax rate is <\/span>35<\/span>%. Finally, you expect working capital to increase from $<\/span>200,000<\/span> in year 2 to $<\/span>300,000<\/span> in year 3. What are your pro forma earnings for year3? What are your pro forma free cash flows for year3?<\/span><\/p>", "transcribed_text": "", "related_book": { "title": "Essentials Of Forensic Accounting", "isbn": "1948306441, 978-1948306447", "edition": "2nd Edition", "authors": "Michael A Crain, William S Hopwood", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2021\/11\/6180cb73a5085_6436180cb7324789.jpg", "uri": "\/textbooks\/essentials-of-forensic-accounting-2nd-edition-9-78e-12", "see_more_uri": "" }, "free_related_book": { "isbn": "1382018703", "uri": "\/textbooks\/cambridge-lower-secondary-complete-mathematics-7-teacher-handbook-2nd-edition-978-1382018708-351461", "name": "Cambridge Lower Secondary Complete Mathematics 7 Teacher Handbook", "edition": "2nd Edition" }, "question_posted": "2024-06-06 14:11:11", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-trial-balance-for-wilson-financial-services-on-january-31", "description": "The trial balance for Wilson Financial Services on January 31 is as follows: Data for month- end adjustments are as follows: a. 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